other option choice - 2.77 yrs-3.22 yrs

Wright Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $1,000,000 and a 5-year life. There is no salvage value for the equipment. The increase in net income each year of the equipment's life would be as follows: Year 1 $443 , 000 Year 2 $418 , 000 Year 3 $353, 000 Year 4 $298 , 000 Year 5 $253, 000 What is the payback period? Multiple Choice O 1.58 years O 1.87 years